Why are consolidation entries used?

Consolidated accounting is used to group the financial information of a parent company and one or more subsidiary companies. The parent prepares consolidated financial statements by making adjusting entries and eliminating intercompany transactions.Click to see full answer. Also question is, what are consolidation entries?Consolidation accounting. September 30, 2019. Consolidation accounting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company. This method is typically used when a parent entity owns more than 50% of the shares of another entity.Also Know, what is the purpose of eliminating Workpaper entries? Eliminating entries are used in the consolidation workpaper to adjust the totals of the individual account balances of the separate consolidating companies to reflect the amounts that would appear if all the legally separate companies were actually a single company. In this way, why do we consolidate? When company owners consider mergers, acquisitions or sales, they must reconcile their personal bottom lines with the fiscal realities of customers, employees and investors. Successful consolidation can improve customer service, grow market share and reduce overall operating costs.Why are consolidated financial statements useful?Consolidated financial statements are the financial statements of a group of entities that are presented as being those of a single economic entity. These statements are useful for reviewing the financial position and results of an entire group of commonly-owned businesses.